Plan your financial future and determine if you're on track for retirement.
Total Projected Savings:$0
Annual Income Needed:$0
Target Nest Egg (4% Rule):$0
How Does the Retirement Calculator Work?
Planning for retirement is one of the most significant financial tasks you will ever undertake. Our retirement calculator helps you visualize your financial trajectory by analyzing your current savings, ongoing contributions, and the power of compound interest. By adjusting variables like your expected annual return and target retirement age, you can see how different scenarios impact your golden years.
The Key Metrics Explained
Annual Household Income: This is your current total earnings before taxes. It serves as a baseline for determining how much lifestyle you need to replace in retirement.
Expected Annual Return: This is the average yearly growth you expect from your investments (stocks, bonds, 401ks). Historically, the stock market averages 7-10%, but many conservative planners use 5-6%.
The 4% Rule: Our calculator uses the "4% Rule" to estimate your target nest egg. This rule suggests that if you withdraw 4% of your total savings in the first year of retirement (and adjust for inflation thereafter), your money has a high probability of lasting 30 years.
Inflation Rate: Inflation erodes purchasing power. A 3% inflation rate means that in 20 years, you will need significantly more money to buy the same goods you buy today.
Retirement Planning Example
Imagine a 35-year-old individual earning $80,000 a year who wants to retire at 65. They currently have $40,000 saved and contribute $800 monthly to their 401k. Assuming a 7% annual return:
Years to Grow: 30 years
Projected Total: Their initial $40k would grow to approximately $304,490, and their monthly $800 contributions would grow to roughly $941,970.
Combined Nest Egg: Approximately $1,246,460.
Strategies to Improve Your Retirement Outlook
If the calculator shows a shortfall, consider these common adjustments:
Increase Contributions: Even a 1% increase in your savings rate can lead to hundreds of thousands more over several decades.
Delay Retirement: Working just two or three years longer allows your portfolio more time to compound and reduces the number of years you need to draw from your savings.
Lower Expenses: Many retirees find they can live comfortably on 70-80% of their pre-retirement income because they no longer have commuting costs or are saving for retirement itself.
function calculateRetirement() {
var currentAge = parseFloat(document.getElementById('currentAge').value);
var retireAge = parseFloat(document.getElementById('retireAge').value);
var annualIncome = parseFloat(document.getElementById('annualIncome').value);
var currentSavings = parseFloat(document.getElementById('currentSavings').value);
var monthlyContribution = parseFloat(document.getElementById('monthlyContribution').value);
var expectedReturn = parseFloat(document.getElementById('expectedReturn').value) / 100;
var percentSpending = parseFloat(document.getElementById('percentSpending').value) / 100;
var inflationRate = parseFloat(document.getElementById('inflationRate').value) / 100;
if (isNaN(currentAge) || isNaN(retireAge) || retireAge 0) {
fvContributions = monthlyContribution * ((Math.pow(1 + monthlyReturn, months) – 1) / monthlyReturn);
} else {
fvContributions = monthlyContribution * months;
}
var totalProjected = fvCurrent + fvContributions;
// Calculate Future Income Needed (Adjusted for Inflation)
var annualSpendingToday = annualIncome * percentSpending;
var annualSpendingFuture = annualSpendingToday * Math.pow((1 + inflationRate), yearsToRetire);
// Target Nest Egg using 4% rule (Divide future spending by 0.04)
var targetNestEgg = annualSpendingFuture / 0.04;
// Display Results
document.getElementById('retirementResults').style.display = 'block';
document.getElementById('projectedSavingsText').innerText = formatCurrency(totalProjected);
document.getElementById('incomeNeededText').innerText = formatCurrency(annualSpendingFuture) + " / yr";
document.getElementById('targetNestEggText').innerText = formatCurrency(targetNestEgg);
var summaryBox = document.getElementById('statusSummary');
if (totalProjected >= targetNestEgg) {
summaryBox.innerHTML = "Great news! Based on these estimates, you are on track to meet your retirement goal. Your projected savings exceed your target nest egg of " + formatCurrency(targetNestEgg) + ".";
summaryBox.style.color = "#004b23";
} else {
var gap = targetNestEgg – totalProjected;
summaryBox.innerHTML = "Adjustment needed: You might face a shortfall of approximately " + formatCurrency(gap) + ". Consider increasing your monthly contribution or exploring investment strategies with higher potential returns.";
summaryBox.style.color = "#b30000";
}
}
function formatCurrency(num) {
return "$" + num.toFixed(0).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
}